As of January 1, 2023, California’s state minimum wage has increased to $15.50 per hour for employers of every size. But it’s not just the state minimum that California employers must consider. Cities and counties have also implemented local minimum wage increases that may be higher than the state minimum. For example, as of January 1, 2023, the City of Los Angeles raised its minimum wage to $16.04 per hour, and the City of San Diego's minimum wage increased to $16.30 per hour. To be compliant, employers must pay employees according to the highest local minimum wage.
Some California employers will face another minimum wage increase on July 1, 2023, depending on where their employees are located within the state. A number of localities in California have minimum wage ordinances that require employers to pay employees working in those areas a minimum wage that exceeds the state minimum wage. To ensure compliance and avoid penalties, employers should keep track of these increases and adjust their pay rates accordingly.
The following localities will raise their minimum wage on July 1, 2023:
Locality | Current Minimum Wage | New Minimum Wage |
Alameda | $15.75 | $16.52 |
Berkeley | $16.99 | $18.07 |
Emeryville | $17.68 | $18.07 |
Fremont | $16.00 | $16.80 |
City of Los Angeles | $16.04 | $16.78 |
County of Los Angeles (unincorporated areas only) | $15.96 | $16.90 |
Malibu | $15.96 | $16.90 |
Milpitas | $16.40 | $17.20 |
Pasadena | $16.11 | $16.93 |
San Francisco | $16.99 | $18.07 |
Santa Monica | $15.96 | $16.90 |
West Hollywood | $17.00 (fewer than 50 employees) $17.50 (50 or more employees) $18.35 (hotel employees) | $19.08 (all employees) |
To comply with state and local laws, employers must keep minimum wage postings up to date in their workplace. It’s important to note that while local minimum wage requirements may change, the minimum salary requirement for exempt employees in California remains based on the state minimum wage and is not impacted by local law updates. Employers should keep this in mind to ensure they are meeting all legal requirements.
Please note that the above list only identifies those localities with increases to their minimum wage effective July 1, 2023. Over 40 localities state wide have higher local minimum wage requirements.
Employers should work with their payroll providers to ensure that any effected employees have their minimum wage increased by July 1, 2023 and that any new rates are properly paid and recorded on employee paystubs.